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Markets go into freefall as Bitcoin drops by 11.6%; Chainlink, Binance Coin, Basic Attention Token resilient

Markets go into freefall as Bitcoin drops by 11.6%; Chainlink, Binance Coin, Basic Attention Token resilient

Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.

The cryptocurrency markets went into freefall as Bitcoin dropped from $13,063 to $11,497, an 11.6 percent drop over the course of 19 hours. The altcoin market saw even greater damage, with the average altcoin losing 12.8 percent. Falling prices do not appear to be attributed to any major news.

The market is seeing double-digit losses across the board without any major attributable news. Bitcoin reported trading volume is up from July 9 values from $28.2 billion to $33.6 billion—a 19.1 percent increase.

Overall market capitalization took a major hit falling from $342 billion to $299, evaporating $43 billion in capitalization value.

Meanwhile, Bitcoin dominance remains at highs not seen since the 2017-2018 bull market. With dominance relatively unchanged this means that BTC dragged most of the market down with it.

For a continued healthy bull trend, large drops to the downside are not abnormal. Bitcoin’s extreme volatility (compared to the traditional equities market) means that swings to both the upside and downside are expected.

Market bull Thomas Lee, co-founder of Fundstrat Global, summarizes this phenomenon:

Some may attribute this volatility to ‘major news,’ but the vast majority of announcements have a nominal impact on the Bitcoin price, despite what pundits and crypto publications may suggest.

Notable coins that weathered the drop were all product-related coins, including Chainlink (-4.67%), Binance Coin (-6.98%), Basic Attention Token (-6.95%), and Maker (-7.19%).

Of the top 10, the coins that saw the largest losses included the two major BTC forks Bitcoin SV (-18.98%), and Bitcoin Cash (-18.45%). TRON (-16.57%) also experienced abnormally large losses.

Realized price per Bitcoin continues to climb to make new yearly highs, which is the average approximate price each holder paid for their coins.

On average, investors paid $5,233 for their coins versus the current market price of $11,497—meaning that the average hodler is still up 119 percent.

Bitcoin | BTC

Updated: Dec 16 at 8:53 pm UTC
$6,923.07
-3.12%

Bitcoin, currently ranked #1 by market cap, is down 3.12% over the past 24 hours. BTC has a market cap of $125.34B with a 24 hour volume of $19.5B.

Chart by CryptoCompare

Bitcoin is down 3.12% over the past 24 hours.

Posted In: , Altcoins, Price Watch, Technical Analysis, Trading
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Mitchell Moos
Author

Mitchell Moos

Contributing Analyst @ CryptoSlate

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking.

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Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.